Identity theft, debt collection: How to protect yourself, your money

CHARLOTTE — Identity theft doesn’t just impact your life; it can also affect your pockets for years.

Criminals borrow money from stolen identities, and now debt collectors are going after the identity of the victim when thieves don’t pay up.

WSB-TV Consumer Correspondent Clark Howard unveils ways to combat paying a debt you don’t owe and save your hard-earned money.

Since 2019, the Consumer Financial Protection Bureau has received hundreds of thousands of complaints about debt collection. Howard recommends that if you are contacted by someone claiming you owe a debt, don’t pay it, but don’t ignore it.

The first step is to ask for proof of the debt; this way, you can tell whether or not the debt has expired or if it is a debt you ever owed. Debt buyers often purchase old debt, sometimes called ‘zombie debt,” for very cheap and then try to collect the full amount.

Lawsuit threats and harassment are very common, some collectors even offer to leave you alone if you pay a portion of the debt. Howard says to do your research before reaching for your wallet, go to court and demand proof that you own the debt, and never ignore a court summons. By ignoring it, you’re automatically made responsible.

Another tip from Howard is to download credit apps like Credit Karma and schedule alerts so you’re always the first to know of any changes to your credit.

(WATCH BELOW: ‘I wake up and it was gone’: Man says debt collector took his car unexpectedly)

‘I wake up and it was gone’: Man says debt collector took his car unexpectedly

(WATCH BELOW: ‘I wake up and it was gone’: Man says debt collector took his car unexpectedly)

‘I wake up and it was gone’: Man says debt collector took his car unexpectedly

©2023 Cox Media Group